Science & Technology
Science and Technology
Science and Technology
Tue, July 6, 2010
Mon, July 5, 2010
Fri, July 2, 2010
SanDisk, Bayer, Lincoln National, Hartford Financial and AIG
CHICAGO--([ BUSINESS WIRE ])--[ Zacks Equity Research ] highlights SanDisk (Nasdaq: [ SNDK ]) as the Bull of the Day and Bayer (OTC: [ BAYRY ]) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Lincoln National Corporation (NYSE: [ LNC ]), Hartford Financial Services Group Inc. (NYSE: [ HIG ]) and American International Group Inc. (NYSE: [ AIG ]).
Full analysis of all these stocks is available at [ http://at.zacks.com/?id=2678 ].
Here is a synopsis of all five stocks:
[ Bull of the Day ]:
SanDisk (Nasdaq: [ SNDK ]) has a strong product portfolio and is a significant player in the U.S. flash memory market.
The company posted robust first quarter 2010 numbers, exceeding the Zacks consensus estimate. SanDisk witnessed major gains in the OEM business and higher product revenue, and has provided a decent guidance for the second quarter. The company witnessed stronger pricing and good OEM sales, which in turn have improved gross margin substantially in the first quarter.
SanDisk is cash rich and is aggressively reducing capital expenditure outlay. In order to reduce inventory levels, the company is slowing down its in-house NAND supply. We are optimistic about the long-term growth story of SanDisk and upgrade the stock to Outperform.
[ Bear of the Day ]:
We are concerned about Bayer's (OTC: [ BAYRY ]) disappointing performance of the CropScience segment in the most recent quarter. Moreover, the delay in approval of Xarelto also concerns us.
Furthermore, the failure of Nexavar to prolong the overall survival in patients suffering from advanced non-squamous non-small cell lung cancer (NSCLC) in a late-stage study is a setback for the company. The competitive environment in which Bayer operates is a further challenge for the company.
Given these factors, we downgrade the stock to Underperform from Neutral with a price target of $54.00.
Latest Posts on the Zacks [ Analyst Blog ]:
Lincoln Repays TARP, Ratings Up
Lincoln National Corporation (NYSE: [ LNC ]) announced on Wednesday that it has bought back all of the preferred shares of $950 million it sold to the government in July 2009 under the Capital Purchase Program of the Troubled Asset Relief Program (TARP). Following the repayment, Fitch Ratings upgraded the long-term ratings of Lincoln and removed them from Rating Watch Positive. Fitch also kept its outlook stable and withdrew its rating on perpetual preferred securities.
In order to repay the bailout fund, Lincoln raised $335 million through a common stock offering of about 12.3 million at a purchase price of $27.25 per share, and also issued $750 million of senior notes.
Accordingly, the proceeds from the sale of shares, $250 million from the notes offering and additional cash at the holding company were utilized for the repurchase of preferred shares.
Further, the proceeds from the notes offering of $500 million were used as part of a long-term financing plan to support reserves for the life insurance policies issued by its insurance subsidiaries.
The rating agency believes that the repayment through capital market financing indicates that Lincoln has good access to the capital markets and holds a strong financial standing. Further, Lincoln is now holding capital which will act as an additional cushion to reduce the impact of near-term uncertainties affecting its business, franchise value and management team.
Consequently, Fitch upgraded the company's issuer default rating to A- from BBB+, its senior debt rating to BBB+ from BBB, and its junior unsubordinated debt rating to BBB- from BB+. Further, it has withdrawn the rating of BB+ on the $950 million perpetual preferred securities.
Further, Fitch has also put Lincoln on watch for an upgrade from A- currently. The rating agency is positive on Lincoln with respect to securing a $2 billion credit line with banks to enhance its financial flexibility and reduce liquidity concerns at the holding company.
The ratings outlook is stable, though Lincoln faces an asset risk that is manageable, refinancing risk and operating risk. Further, Lincolna™s rating would be pressured if it is unable to meet certain rating expectations such as, increasing leverage; or if it fails to preserve enough holding company cash to cover 12 to 18 months of annual interest payment, common stock dividends and debt maturities; or investment losses top loss expectations.
Lincolna™s peer, Hartford Financial Services Group Inc. (NYSE: [ HIG ]) completed its Troubled Asset Relief Program (TARP) repayment of $3.4 billion in March. American International Group Inc. (NYSE: [ AIG ]) is the only insurer yet to repay its remaining $132 billion, out of $182.3 billion TARP funds it had received.
Get the full analysis of all these stocks by going to [ http://at.zacks.com/?id=2649 ].
About the Bull and Bear of the Day
Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.
About the Analyst Blog
Updated throughout every trading day, the [ Analyst Blog ] provides analysis from Zacks Equity Research about the latest news and events impacting stocks and the financial markets.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous analyst coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks [ "Profit from the Pros" ] e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today by visiting [ http://at.zacks.com/?id=7158 ].
About Zacks
Zacks.com is a property of [ Zacks Investment Research ], Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the [ Zacks Rank ], which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at [ http://at.zacks.com/?id=4582 ].
Visit [ http://www.zacks.com/performance ] for information about the performance numbers displayed in this press release.
Follow us on Twitter: [ http://twitter.com/zacksresearch ]
Join us on Facebook: [ http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts ]
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
